March ICE Arabica (KCAH0) Coffee:
In the medium-term, KCAH0 is still meandering within the slowly rising channel C1, started last July.
In the shorter-term, today’s surge points to an immediate return towards 150 without a prior decline below 136. This will remain the case as long as KCAH0 remains above 138.15.
Invalidation: A close below 138.15 would be bearish.
March LIFFE Robusta (LRCH0) Coffee:
In the short-term, LRCH0 is pointing higher, and the next objective is a challenge of 1400, followed by 1425 then the upper channel line (1430 on 01/06 and 1428 on 01/07).
As long as LRCH0 remains under the upper channel line, the medium-term direction will remain down.
Invalidation: a close below 1345 would point to a decline towards 1325 and to an immediate resumption of the decline.